Stocks plunge as trade war escalates

Beijing retaliated against Donald Trump's tariffs by announcing new tariffs on American products that sparked a sell-off Monday in the stock market.
1:21 | 05/14/19

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Transcript for Stocks plunge as trade war escalates
We move to president trump's trade war with China. Beijing has now retaliated against trump's new tariffs by announcing new tariffs and the president apparently unfazed insisting the U.S. Is in a strong position. Our senior white house correspondent Cecilia Vega has the latest. Good morning, Cecilia. Reporter: Hey, George, good morning to you. President trump says he loves that the position that America is in right now, but he keeps saying one thing, that China is paying the U.S. Billions in that's not actually what's happening here. It's American importers who are going to be paying more for these Chinese goods. That eventually gets passed on to the consumers and economists we're talking to say we can expect to see prices go up at big box stores like Amazon, Walmart, target, think of all the Chinese imports you see in those stores when you go shopping. Some of the items going up likely according to economists we've spoken to, vacuum, TVs, computer parts, makeup, pet food and toys, food like fish, meat and vegetables and one trade group says it could cost the average American family of four an extra $767 a year. Smartphones, George, could be next to go up if the U.S. Decides to impose an additional round of tariffs. You mentioned that Wall Street sell-off yesterday. That was the biggest one-day decline of the year, George. We will be watching the markets today, okay, Cecilia, thanks very much.

This transcript has been automatically generated and may not be 100% accurate.

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